It looks like the week of bodies floating to the surface and drifting into the harbor. GMAC is only the latest. This is also only the beginning. Should GMAC become the government's plaything, with the goal of returning lending to the state it was, will we just see an extended bubble? Before long every element of lending will be in centralized hands. America! Fuck yeah!
U.S. Treasury Secretary Timothy Geithner said on Friday that the Obama administration will provide "substantial support" to troubled lender GMAC, a vital provider of financing for the domestic auto industry.
"We're going to provide substantial support to GMAC," Geithner said in an interview with Reuters Television. "It's likely, again, that GMAC will need to take additional capital from the government and we'll be prepared to provide that."
The Treasury and U.S. banking regulators said on Thursday that GMAC needs to raise $11.5 billion to fill a capital hole it could face if the economy were to deteriorate further.